LONDON STOCK EXCHANGE
Randgold tie-up will leave gold investment void in London
Randgold's deal with Barrick will make it the second mining company to announce its departure from the LSE in three months
London -A tie-up between Randgold Resources and Barrick Gold will leave a void in the London market for investors seeking exposure to gold via companies that produce the precious metal. Canada’s Barrick Gold has agreed to buy Africa-focused Randgold for $6.5bn to create the world’s largest gold producer. It intends to list its shares in the new, enlarged company in New York and Toronto.
Randgold, listed in London for 21 years, is the second mining company to announce its departure from London’s exchange in three months, after Vedanta Resources. "For a London investor in the gold sector, Randgold would be the only real option of a company with a good track record and enough liquidity," a fund manager at Old Mutual said. "Randgold is going from one-of-a-kind investment in London to the biggest of a group of investments in Canada and New York," the fund manager added. "It is the most liquid, so that will potentially give it a premium in those markets," he said. Gold companies hav...
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